Manila Water Philippine Ventures

Manila Water Philippine Ventures supports the improvement of local communities’ quality of life with its 22 domestic subsidiaries implementing water and environmental projects across the country. MWPV focuses on developing strong partnerships with local governments as well as key players in the property sector led by its core domestic operating subsidiaries namely, (1) Boracay Water, (2) Clark Water, (3) Laguna Water, and (4) Estate Water (a division of Manila Water Philippine Ventures).

While MWPV acts as a vehicle for expansion in the Philippines via new acquisitions and partnerships, the new business development teams re-aligned the Group’s top priorities and took a step back in pursuing new opportunities in the water space in light of the COVID-19 pandemic. The non-East Zone businesses focused in stabilizing current operations and meeting service level standards. Nevertheless, business units are definite that the potential opportunities in the water space remain robust and will continue to pursue business growth objectives as soon as the circumstances becomes better.

On a consolidated MWPV level, revenues declined by 10 percent to Php4,224 million. Specifically, the notable 4 percent growth in water and wastewater revenues for the period was offset by the 70 percent decline in Estate Water’s supervision fees. The year-on-year growth in water and wastewater revenues was attributable to the 9 percent increase in billed volume, mostly coming from the full year operations of new operating subsidiaries, as well as higher effective tariff of Laguna Water with its upward tariff adjustment implemented at the start of 2020.

Laguna Water’s billed volume increased two percent to 44.9 mcm in 2020 from 44.1 mcm in 2019 on the back of increased consumption by the residential segment, but was partially offset by the lower consumption of commercial and industrial accounts due to the restrictions brought about by the COVID-19 pandemic. Meanwhile, with the tourism and manufacturing sectors largely affected by the pandemic, Boracay Water and Clark Water’s billed volume declined by 33 percent and 7 percent respectively. Lastly, Estate Water’s billed volume was flat versus the previous year at 10.5 mcm in 2020.

MWPV posted a net loss in 2020 amounting to Php480 million.

MWPV deployed capital expenditures amounting to Php2,249 Mn, 18 percent lower than 2019 due to mobility restrictions. The Group remains ready to ramp-up on infrastructure building upon further easing of quarantine restrictions in order to pursue and attain its objectives.